Owe More Than Your Home Is Worth? This May Help.

     One out of five homeowners currently owes more on his mortgage than the house is worth.  If you are among them but you can afford your payments and aren't planning on moving in the next few years, stop worrying.  You are rebuilding equity with every payment you make, and home prices will eventually rebound, bringing you above water again.

     Refinancing may also be an option.  The government's new mortgage-relief program allows people who owe as much as 105% of their home's value to get a new loan, as long as their current mortgage is held by Freddie Mac or Fannie Mae and they can provide proof that they will be able to afford the new payments.  Homeowners who are struggling financially may also be able to get their loans restructured.

     Your last resort is a short sale, in which your lender lets you sell the house for less than you owe.  But that sometimes might drop your credit score as much as 200 points, making it tough to get another loan at terms you can afford.

ACTION PLAN:

To see whether you're eligible to refinance or restructure your loan, 

go to www.mortgagereliefonline.com.  

Contact your lender if you're struggling to make your payments.

You're more likely to get help if you reach out before warning notices start coming out.

Contact your local real estate professional for comparable short sale 

prices in your area.

Craig Matters, Money Magazine

If you are upside down on your mortgage and would like more information on the choices available to you, please call Dave Silver, Devin Realty Inc.  321-508-2669